Merchant Export-IGST applicable or Not

[Binu Karuthedath]

We are Trading or Merchant Exporter

In Trading export, we have bought goods from other Manufacturing unit or dealer and export the same.

Now, in GST regime we have to buy goods (Taxable) for trading export with payment of IGST from 1 st dealer (as per Circular No. 4/4/2017-GST) and 2nd dealer have to export the same

2nd dealer is raising invoices in Foreign Currency(US Doller) for export

Can I raise export invoice without collecting IGST and send the goods to Port? if I have to collect GST, How it possible in Forex invoice?

[Kishan Barai]

In Export Invoice you don't need you charge IGST, if you paid IGST at the time of purchase, you will get refund in 6 days after filing of Shipping Bill

[RAKESH R]

Mr. Binu

Please see my reply to Issue ID No. 112376.

The same is applicable for you .

regards

S. Gokarnesan

[Binu Karuthedath]

Dear Sir

I have read your reply POST-ID 112376 .it is a good one .In that Reply, you have mentioned That "

Y" can pay IGST on the export value ( here the tax can be paid either out of credit earned for the purchase made from the manufacturer or pay by cash)

When we pay IGST and where we pay IGST . If we have to export without Bond/Lut .

[Kishan Barai]

You need to pay IGST at the time of purchasing goods from Suppliers ment for Exports

AI Summary

IGST on merchant exports: IGST payable at procurement can be claimed or refunded while export invoices omit IGST.
Merchant exporters must pay IGST at the time of procurement of goods meant for export; export invoices issued to foreign buyers are not required to charge IGST. IGST paid on purchase may be met from input tax credit or cash and may be refunded after filing the Shipping Bill. The procedural question of exporting without a Bond/LUT is noted but does not alter the requirement to discharge IGST at procurement.